Unaudited Financial Results for the six months to 30 September 2020

WEL Networks Limited has released its unaudited Financial Results for the six months ended 30 September 2020.
The highlights, on a continuing operations basis, were:

  • The completion of the UFF Holdings Limited sale, the holding company for Ultrafast Fibre Limited, on 30 September 2020. The sale resulted in the repayment of all bank debt and termination of all interest rate hedging leaving the $150m subordinated bond in place until August 2023.
  • Revenue of $70 million is $5 million lower than September 2019 as a result of lines fee reductions, which is in line with our continued focus on reducing lines charges to consumers.
  • Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) from continuing operations of $35 million is $7 million behind from September 2019 largely due to the lower revenue and the impact on unrecoverable costs through the Covid-19 lockdown.
  • Total assets of $1,001 million, a net decrease of $328 million from 31 March 2020 reflecting the sale of UFF Holdings Limited and the fair value of the $200 million 18 month deferred payment portion of the sale proceeds.

Chair, Rob Campbell said “the completion of the UFF sale enables WEL Networks to repay bank debt and to pursue new opportunities and invest in innovative energy solutions in accordance with our business strategy.”

A full copy of the interim report is available here

2020 ANNUAL Report

WEL Networks Limited (the ‘Group’) has released their Annual Report today setting out the audited financial results for the twelve months to 31 March 2020.

“In a changing market the Group achieved a positive operating result for the period, with increased revenue from the prior year due to customer growth across both the electricity and fibre networks. The business has created an innovative, sustainable and robust platform to ensure both businesses are positioned well into the future to continue delivering electricity and ultrafast broadband services to our communities across our region," Group Chair Rob Campbell said.

For the year ended 31 March 2020, the Group reported a profit after tax of $35 million.

Total revenue was $223 million reflecting a $3 million decrease in electricity network revenue, as a result of lines fee reductions, which is more than offset by a $15 million increase in fibre network revenue as fibre uptake increased.

Total net debt of $603 million, up $61 million from March 2019, relating to the now completed UFB2 and UFB2+ fibre network build program during the 2020 financial year.

The Group’s total assets of $1.329 billion, an increase of $87 million from 31 March 2019.

Key non-financial highlights for the Group include:

  • Over 1,500 energy customers, many of whom face energy hardship, registered with our low cost energy retailer, OurPower;
  • WEL Networks becoming a Toitū carbonreduce (formally CEMARS) certified organisation;
  • The completion of the Government’s ultra-fast broadband UFB2 and UFB2+ expansion initiatives – two years ahead of schedule – delivering access to 30,000 new premises across a further 27 central North Island towns and urban fringe areas; and
  • The expansion of our electric vehicle charger network to a total of 22.

Finally on 11 May 2020 (post balance date) WEL Networks announced the sale of its shares in UFF Holdings Limited, the holding company for Ultrafast Fibre Limited (UFF).

Mr Campbell said “The UFF sale will enable WEL Networks to strengthen the core electricity business balance sheet, allowing us to pursue new opportunities and invest in innovative energy solutions in accordance with our business strategy. The investment in fibre has both delivered valuable infrastructure to our communities and proved a very successful investment for WEL.”

The transaction is subject to Overseas Investment Act consent and change of control approvals.

Read the full 2020 Annual Report